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Prospects

According to Frost & Sullivan's Report, the FSS industry in Singapore is forecasted to grow from approximately S$866.1 million in Financial Year 2011 to about S$1,430.2 million in Financial Year 2015, registering a compounded annual growth rate of approximately 13.4% during this period.

We believe that the outlook will remain positive due to the following factors :-

Economic growth leading to the growing population of foreigners

• Singapore attracted foreign direct investments totalling approximately S$430 billion and created over 160,000 new skilled jobs between 2001 and 2010²
  
  
• Economic growth leading to an increase in the population of foreigners, socio-economic factors and the demand for holistic development of students are demand drivers that will likely contribute to growth of the FSS industry in Singapore²
  
  
• The requirements for minimal disruption to the educational needs of their children upon relocation to Singapore and the need for a holistic and well-rounded education are strong drivers for these expatriates when opting for a private education for their children in Singapore².

Socio-economic factors influencing demand for FSS education

• Disposable income of expatriate families
  With about 50% of expatriates earning over S$200,000 per annum³, this is an indication of the spending power of expatriate families who can provide their children with FSS education, thus creating a constant demand for FSSs such as OFS
  
  
• Singapore as a preferred expatriate destination
  Ranked the third most ideal destination after Australia and the United States, with 73% of those surveyed more likely to send their children to FSSs and willing to spend more (average of US$20,122) for their children's education³
  
  
• Constant mobility of expatriates
  Given the constant mobility of expatriates and their families, a smooth transition of their children's education is important. According to Frost & Sullivan's Report, this factor, coupled with the relatively high disposable income makes them relatively price inelastic to tuition fees of FSSs, creating a constant demand for FSS education in Singapore
  
  
• Demand for quality education
  OFS is well-positioned to benefit from the Singapore government's initiatives alongside the demand for quality private education
  
  

Increasing recognition of the IB curriculum in Singapore

• According to Frost & Sullivan's Report, a 2010 survey of 150 university and admissions staff from the United Kingdom rated the IB's Diploma Programme higher than other qualifications based on the breadth of its curriculum
  
  
• We believe there is an upward trend in the number of schools offering the IB curriculum, and its increased recognition and appeal will bode well for OFS

² According to Frost & Sullivan's Report
³ According to the HSBC Expat Explorer Survey 2011 cited in Frost & Sullivan's Report

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